Mexico’s inflation rate falls to 7.77% in the first half of December

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The general inflation rate fell in the first half of December to 7.77 percent annually, the National Institute of Statistics and Geography (Inegi) reported on Thursday.

The data is slightly lower than the 7.8 percent reached in all of last November and contrasts with the 8.76 percent of the first half of last September when the highest rate was reached for an equal period since the year 2000.

Even so, there was an increase of 0.39 percent in the Consumer Price Index (CPI) compared to the previous 15 days, as detailed by the autonomous body in its report.

The Inegi recalled that in the same fortnight of 2021, a year ago, biweekly inflation was 0.10 percent and annual 7.45 percent.

The underlying price index, considered a better parameter to measure general shortages because it eliminates items with high volatility in their prices, increased by 0.57 percent fortnightly and 8.35 percent annually, detailed the Inegi in its report.

While the non-core item decreased by 0.14 percent at the fortnightly rate but increased by 6.08 percent year-on-year.

Within the underlying goods and services subgroup, merchandise increased by 0.62 percent in the fortnightly period and 11.08 percent annually.

While services advanced 0.51 percent fortnightly and 5.22 percent annually.

In the non-core, agricultural prices increased by 0.34 percent compared to the immediately previous period, and 8.85 percent compared to the same period last year.

Energy and tariffs authorized by the government fell 0.54 percent in the fortnight, although they rose 3.85 percent annually.

The price index of the minimum consumption basic-products basket made up of 176 products and services, climbed 0.36 percent fortnightly and 8.50 percent at an annual rate.

Consumer prices closed in 2021 with a rise of 7.36 percent, a level not seen in 20 years due to the rise in basic inputs such as agricultural or energy.

Inflation for 2020 closed at 3.15 percent, while in 2019 inflation was 2.83 percent and in 2018 consumer prices rose 4.83 percent.

The Bank of Mexico (Banxico) raised the interest rate to a record 10 percent on November 10, which represents the twelfth consecutive increase in the target to try to contain inflation. 

Source: OEM

Mexico Daily Post